Kingston Company provides management services for apartments and rental units. In general, Kingston packages its services into
Question:
Kingston Company provides management services for apartments and rental units. In general, Kingston packages its services into two groups: basic and complete. The basic package includes advertising vacant units, showing potential renters through them, and collecting monthly rent and remitting it to the owner. The complete package adds maintenance of units and bookkeeping to the basic package. Packages are priced on a perrental unit basis. Actual results from last year are as follows:
Kingston had budgeted the following amounts:
Required:
1. Calculate the contribution margin variance.
2. Calculate the contribution margin volume variance. (Round calculations to three decimal places.)
3. Calculate the sales mix variance. (Round calculations to three decimalplaces.)
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
Step by Step Answer:
Cost Management Accounting And Control
ISBN: 101
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan